It’s tough out there for businesses in many sectors. Economic conditions are putting pressures on businesses as much as for consumers with cost-of-living pressures. Business operators are feeling it from two sides – as consumers in their personal life with private expenses, and at work, running their business. Keeping costs down when vehicles need to be upgraded or replaced can be a challenge. Many operators will consider buying second-hand rather than new model. But to ensure that is ultimately an economical, cost-saving move, the used truck finance should form an integral part of the decision-making.
Loans for new compared with second-hand vehicles can differ with several aspects, especially interest rates, terms and the collateral requirements. All of which can impact the overall cost of the financing and the total investment expenditure. We provide a quick guide to aspects that operators may consider when making those critical buying decisions to ensure the outcome will be economical and support their business over the life of the vehicle.
Will buying second-hand be a genuine money-saver?
The working life and ownership cycle of a heavy vehicle can be quite long. Decisions need to be made over a longer rather than a short term. When making long-term based comparisons with buying new v second-hand, consider the fuel efficiency and other advantages of newer models, including safety.
Manufacturers are working hard to include advanced safety and efficiency features in their new models. Features which can reduce fuel costs, increase safety which may impact downtime, and reduce driver fatigue. Aspects which may contribute to improved productivity, more runs and ultimately, a better return on the investment.
Consider the repair, servicing and maintenance costs on a second-hand vehicle, and the downtime to carry out the work. While the purchase cost of second-hand may be significantly lower, the operating costs may cancel out the differential over the long term. Many truck brands offer free servicing deals with new vehicles – worth adding into the mix for consideration.
Basic Guide to Used Truck Finance
Financing is a major consideration when investing in any vehicles, whether new or second-hand. The differences with loans on new v second-hand vehicles should be considered when making the buying decision. Interest rates, collateral requirements and loan terms can be different for new and second-hand vehicle financing.
On the positive side, all major brands, all types and configurations of second-hand light, medium, heavy-duty – Isuzu, Hino, Kenworth, Mack, etc, can be financed. This includes vehicle-only and truck and trailer combinations.
The same credit facilities are available for new and used truck finance – Chattel Mortgage, Lease, Hire Purchase, and Rent-to-Own. For all options, we secure fixed interest rates, fixed terms and fixed repayments for second-hand vehicle loans. Making planning cash flow and expenditure well into the future, over the ownership cycle of the vehicle, much easier than with variable rate finance.
Balloons and residuals are included and should be considered against the projected resale value of the used vehicle at the end of the term. This may affect the balloon size that a lender will approve which then impacts the monthly repayments. All available tax deductions can be realised.
New models can more readily be approved for no deposit financing. Where a lender does not approve the full price of a used model in the loan, operators may have to find extra cash to make a downpayment to reduce the loan amount required.
Used Truck Finance Collateral Requirements
Key to the workability of used truck financing may be the collateral requirements. An assessment of the vehicle is integral to the loan. With used vehicles, aspects like if the engine has been reconditioned and what other major work has been done can be part of the assessment as they can increase the value and life of the vehicle.
New vehicles are generally readily accepted as collateral. Where a second-hand model is not accepted as 100% security, it may present issues for operators in providing other property or assets as collateral.
Compare Used Truck Finance Interest Rates
An important aspect is of course the interest rate. There can be variations in rates on new and second-hand vehicle loans. Operators will need a quote to make comparisons as each vehicle and application is assessed on an individual basis.
Once you have a quote, use a Truck Finance Calculator to make comparisons with estimated repayments on new vehicle financing. The results may be extremely enlightening!
Securing Cost-effective Finance that Works for You
For many operators, buying second-hand with the lower price tag is going to be the way to go. The key to ensuring it is an economical and affordable decision, may be in the financing. Jade Truck Loans assists operators to keep costs down when purchasing second-hand with individually tailored used truck finance at the most competitive rates.
Securing the lowest rates ensures the lowest repayments and ultimately a lower overall investment. Making a second-hand vehicle a more affordable and economical purchase. Having our expert brokers working to secure the terms and collateral requirements that work for you, may contribute even further to making buying second-hand a very smart move over the ownership cycle of the vehicle. To assist with buying decisions, especially if purchasing at auction, loan applications can be made prior to purchase. Providing vital intel for comparing your options.
To ensure a second-hand vehicle purchase is economical and will contribute to containing costs, contact Jade Truck Loans on 1300 000 003 for affordable used truck finance.
DISCLAIMER: THIS INFORMATION IS ISSUED PURELY FOR THE PURPOSE OF GENERAL INFORMATION PROVISION. IT IS NOT TO BE TAKEN AS THE ONLY SOURCE OF INFORMATION FOR BASING FINANCIAL DECISION-MAKING. THOSE REQUIRING FINANCIAL GUIDANCE AND ADVICE SHOULD CONSULT WITH THEIR FINANCIAL CONSULTANT OR ADVISOR. NO LIABILITY IS ACCEPTED FOR ANY MISREPRESENTATION OF POLICIES, DATA OR ERRORS IN THIS CONTENT.
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